Arby's

Interested in selling your Arby's NNN property or Arby's ground lease property and was wondering what you can get for it in today’s changing market?

Contact us for a complimentary broker opinion of value for your off-market Arby’s NNN property for sale or Arby’s ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your Arby’s NNN property or the inclusion of a Arby’s ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Arby’s properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Arby's logo

Number of locations

As of January 2023, Arby’s has expanded its presence with over 3,500 restaurants across ten countries.

Revenue and income

In 2022, Arby’s reported total revenue of $3.5 billion. The company achieved a net income of $180 million during the same period.

Future plans

Arby’s has ambitious plans for growth in the coming years. By the end of 2023, the company aims to open more than 500 new restaurants worldwide. Additionally, Arby’s is actively investing in innovative technologies to enhance customer experiences and streamline operations.

Corporate vs. franchise 

Approximately 80% of Arby’s restaurants operate as franchises, while the remaining 20% are corporate-owned. Prospective franchisees typically pay a franchise fee and ongoing royalty fees to be part of the Arby’s brand.

Additional information Arby’s Properties

Arby’s traces its origins back to 1964, when it was founded in Boardman, Ohio.
The restaurant chain is renowned for its roast beef sandwiches and a wide range of deli-inspired offerings.
Arby’s has consistently grown in popularity and has become a significant player in the fast-food industry.
The company is dedicated to charitable efforts, supporting various community initiatives through the Arby’s Foundation.

Arby’s History

Arby’s has a rich history from 1964, founded by Forrest Raffel and Leroy Raffel in Boardman, Ohio. The name “Arby’s” is derived from “R.B.,” which stands for Raffel Brothers. The restaurant initially focused on serving high-quality roast beef sandwiches, which quickly gained popularity among customers.

Arby’s expansion began in the 1970s, and by the end of that decade, it had already grown to over 500 locations. During the 1980s and 1990s, the restaurant chain continued to innovate and diversify its menu, introducing new items like curly fries, chicken sandwiches, and various deli-inspired offerings.

In the early 2000s, Arby’s underwent several ownership changes, which impacted its growth trajectory. However, the brand continued to evolve, adapting to changing consumer preferences and market demands.

In 2011, Arby’s underwent a revitalization strategy under the ownership of Roark Capital Group, which aimed to enhance the brand’s image and menu offerings. This strategy helped reposition Arby’s as a fast-casual restaurant known for its premium quality meats and sandwiches.

Why Invest in Ground Lease and NNN Lease of Arby’s?

Investing in Arby’s ground lease and triple net (NNN) lease properties offer compelling reasons:

1) Arby’s NNN Property Investment: Stable income

Arby’s is a well-established brand with a loyal customer base, providing investors with a steady and reliable income stream. Ground and NNN leases offer consistent cash flows over an extended period.

2) Arby’s NNN Property Investment: Established tenant

As a recognized name in the fast-food industry, Arby’s reduces the risk of vacancy or lease default, making it a desirable tenant for the property.

3) Arby’s NNN Property Investment: Low management responsibility

Ground and NNN leases place the responsibility of property maintenance and expenses on the tenant, freeing landlords from day-to-day management obligations.

4) Arby’s NNN Property Investment: Favorable lease terms

Long lease terms with built-in rent escalations provide stability and the potential for rental income growth.

5) Arby’s NNN Property Investment: Real estate value

Arby’s strategic locations, often in high-traffic areas, can contribute to the property’s value appreciation, offering potential capital gains for investors.

Pros and Cons of Arby’s Ground Lease and NNN Lease Investment

Pros:

1. Stable income from a well-established brand with a loyal customer base.
2. Arby’s recognized name reduces vacancy and lease default risks.
3. Minimal management responsibility for landlords due to the tenant’s obligations.
4. Long lease terms provide stability and potential for rental income growth.

Cons:

1. Lease renewal risk when the lease term expires.
2. Dependency on Arby’s success and operational performance.
3. Market competition and consumer trends may impact profitability.
4. Limited control over property decisions.
5. Real estate investments carry inherent economic and market risks.

Engaging in thorough due diligence and considering factors such as location, lease terms, tenant strength, and investment strategy is crucial. Seek advice from real estate professionals and financial advisors to effectively align your investment goals and risk tolerance.

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